MSEDCL purchasing GENCO’s power at high cost without bidding: Goenka
   Date :25-Feb-2025

MSEDCL purchasing GENCOs power at high cost without bidding Goenka
 
Business Reporter :
 
Highlighting various points affecting the power charges in the State, expert in the field R B Goenka has recently raised objections and gave suggestions over the MSEDCL’s proposed changes in the power tariff. In a petition filed before the Maharashtra Electricity Regulatory Commission (MERC) Goenka has also commented on some of the issues, which he felt, are not in the interest of the power consumers. At the outset, Goenka alleged that the Maharashtra State Electricity Distribution Company Ltd (MSEDCL) did not follow the provisions of multi year tariff (MYT) regulations and had not submitted all the required data. “MSEDCL did not provide information to be provided for category wise sales and revenue as required of regulatory formats in addition to other regulatory formats,” he stated in the petition. On power purchase expenses, Goenka said MSEDCL is purchasing power at a high cost from the GENCO and the power purchase rates are still not approved by the commission.
 
“Though the cost of power purchase from GENCO is too high, MSEDCL is purchasing maximum power from it. Moreover, there is a mismanagement in coal purchase of GENCO,” he observed, highlighting the reduction of gross calorific value (GCV) of coal supplied from Western Coalfields Limited at the receiving end of GENCO. “It is important to note that the Maharashtra State Power Generation Company Limited (MSPGCL) gets priority in allotment and supply of coal from the nearest mines at control rates and there is no price hike. However, the company is regularly increasing fuel adjustment charge (FAC).
 
Thus, I request the commission to direct MSEDCL to purchase power from all the suppliers including GENCO on competitive bidding procedure,” he suggested. According to Goenka, there is a mismatch in data of revenue of sales of agricultural consumption which clearly establishes that increased agricultural sales has been shown to highlight reduced losses. Expressing his views of the proposed revision in (Time of Day) ToD slots and its impact on consumers including roof top solar generators, Goenka said the proposal will have a very adverse impact on consumers having rooftop solar generation systems.
 
“As per the roof top solar generation regulations, the banked power in net metering system can be utilised during the same slot of exported energy or in the non peak hours. Most of the consumers are utilizing the banked energy during the night peak hours. But as per the MSEDCL’s proposal the night hours are proposed as peak hours and the power exported during the day time i.e. from 9.00 hrs to 17.00 hrs can not be utilised in the peak hours but can be utilized only during solar generation hours when the consumer having roof top solar generator system do not need the banked power,” he pointed out. Further, the solar generator will have to sell the unused banked power to MSEDCL at a generic tariff rate of Rs 3 per unit at the end financial year. In addition to this MSEDCL has proposed grid support charges of Rs 1.93 per unit. These factors will discourage the prospective solar power generators, he added. Goenka suggested that the roof top solar regulations should be modified in case new ToD slots are implemented. “For settlement of banked energy in a particular peak hours slot, the licensee may charge TOD charge for that particular slot for utilisation of banked energy in that slot. There should not be any additional charge for utilisation of banked energy in normal or off peak slots,” he added.